(1) The surplus area, which has vested in the State Government under section 8, shall be at the disposal of the State Government.
(2) The State Government may, by notification in the Official Gazette, frame a scheme for utilizing the surplus area under the Punjab law, the Pepsu law or this Act by,—
(a) conferment of rights of ownership on tenants in respect of such land as is comprised in the surplus area of the landowner of such a tenant;
and
(b) allotment to tenants, members of Scheduled Castes and Backward Classes and landless Disposal of surplus area.
agricultural workers, of an area not exceeding two hectares of the first quality land or equivalent area, provided that the total area held or owned by any such allottee, after the allotment, shall not exceed two hectares of the first quality land or equivalent area.
(3) Any scheme framed by the State Government under sub-section (2) may provide for the terms and conditions on which the rights of ownership are to be conferred on the tenants and also the terms and conditions on which the land comprised in the surplus area is to be allotted.
(4) The State Government may, by notification in the Official Gazette, add to, amend, vary or revoke any scheme made under this section.
(5) Notwithstanding anything contained in any other law for the time being in force and save in the case of land acquired by the State Government under any law for the time being in force or by an heir by inheritance, no transfer or other disposition of land which is comprised in the surplus area under the Punjab law, the Pepsu law or this Act, shall affect the vesting thereof in the State Government or its utilization under this Act.
(6) The utilization of any surplus area before the commencement of this Act will not affect the right of the tenant to purchase land in accordance with the provisions of section 15 or the right of the landowner to receive rent from the tenant settled on the surplus area till the tenant becomes the owner thereof.
(7) Where succession has opened after the surplus area or any part thereof has been determined by the Collector, the saving specified in favour of an heir by inheritance under sub-section (5) shall not apply in respect of the area so determined.